Miliband should sack Ed Balls

Labour cannot hope to rebuild its economic credibility while Balls remains shadow chancellor.

In his upcoming reshuffle, Ed Miliband should replace Ed Balls as shadow chancellor.

The Labour party is currently becalmed, and with it Miliband's leadership. In the 12 months since he replaced Gordon Brown, Labour's poll rating has risen one per cent according to the most recent Populous poll, two points according to MORI. Despite riots, war and economic stagnation Labour's leader cannot break beyond the margin of error.

Those wondering whether phone hacking would be a game changer have their answer. It has changed nothing. Despite his deft response to the crisis almost half of Labour supporters cannot picture Ed Miliband as prime minister, and his general approval ratings are plumbing new depths.

But it's not only Ed Miliband the polling furies have chosen to mock. Unemployment is rising. Business confidence declining. Growth estimates are being frantically revised down. Yet unbelievably, the Conservative party has now opened up a ten point lead over Labour on the issue of who has the best economic policies for the country. Even more staggering, their lead has actually increased since March. The worst things get for the economy, the better things seem to get for George Osborne and his party.

There is a simple reason for this paradox. Labour's own economic policy has no clothes. The deficit is the defining issue in British politics. And Tory attempts to brand Labour as deficit deniers have succeeded beyond their wildest dreams. In fact, they have not so much branded shadow ministers as embalmed them, placed them in a glass case and erected a sign "Deficit Denier, official exhibit, 2010 - present".

No one within the Labour party is prepared to even glance at, never mind acknowledge, this elephant in the shadow cabinet room. Nor are they prepared to acknowledge the even larger elephant balancing upon its shoulders. The person who must take responsibility for this parlous state of affairs is Ed Balls.

Labour's shadow chancellor is one of the few political heavyweights on the front bench. But in this specific brief he is an albatross around his party's neck. All the opinion polls indicate the public blames the economic policies of the previous Labour government for the cuts to thier services, along with the hardship they are experiencing, more than the coalition. And Ed Balls is the individual in the shadow cabinet more closely associated with those policies than any other.

Ed Miliband is acutely aware of the toxic legacy of the Brown premiership. Hence his reluctance to even raise the issue of the economy in the wake of the publication of the Darling memoirs. But if he is wary of discussing economics when David Cameron has a copy of Back from the Brinksitting on his lap, how can he hope to make a case whilst he has Ed Balls sitting on his own?

Nor is this just an issue of legacy. Ed Balls was instrumental in rebuilding Labour's economic credibility from the rubble of the 1992 election defeat. He did it by adhering to a simple golden rule. If Labour couldn't ditch their tax and spend image they were unelectable. Prudence became the watch word. Shadow ministers were banned form making any commitments on spending. Gordon Brown, at Ball's urging, pledged to stick to Tory spending limits, and did so even after Labour's landslide 1997 election victory.

Yet as shadow chancellor Ed Balls seems intent on unlearning every rule he once imposed with iron, and occasionally brutal, discipline on others. Labour's policy has not just regressed to tax and spend. It's now cut tax and spend. New expenditure commitments are tossed around like confetti. Tax cuts bounced out with no internal consultation. Prudence has been ditched, replaced by that leather clad vixen, Ms Pump Primer.

What is Ed Balls thinking? It's not just that he's trying to get the voters to embrace an economic agenda they rejected decisively at the 2010 election. They're being asked to endorse economic policies they rejected at the 1979 election. The perception of fiscal profligacy isn't a dead end for the Labour party. It's political hemlock. We know this because Ed Balls told us it was. And he was right.

Labour's economic policy is no longer grounded in political reality, but in a combination of misguided loyalty, stubbornness and Keynesian economic orthodoxy. Ed Balls seems to believe distancing himself from the policies of Gordon Brown would represent a form of betrayal. It would not. It's just the price of doing business for a new party of opposition. He also seems to equate dogma with strength. Yet by sticking unflinchingly to the failed strategy of a failed manifesto he is reinforcing every negative stereotype his enemies have ever sought to construct around him. "The reckless thing to do is plough on regardless", he told Tribune this week. Too right.

Ed Balls is shadow chancellor. His is not chancellor. His prescriptions for the nation's ills may be economically sound. But they are politically unsustainable. Saying 'I was right, you were wrong' to your political opponents, is one thing. Saying it to the voters is a different matter entirely.

He seems unable, or unwilling, to acknowledge this. A destructive combination of loyalty, stubbornness and pride have locked him into a strategy from which he cannot escape. Which is why, at the next shadow cabinet reshuffle, Ed Miliband needs to set Ed Balls and his party free.

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Why Boris Johnson is Theresa May's biggest Brexit liability

The Foreign secretary is loved by Eurosceptics and detested by EU negotiators. 

Boris Johnson is a joke in Brussels but not the funny kind. He is seen as the liar who tricked Britain into leaving the European Union.

Since his election as a MEP in 1999, Nigel Farage has sucked EU money into his campaign to get the UK out of the EU. But the contempt reserved for Boris is of a different order - because he should have known better.

Johnson has impeccable European pedigree. His father Stanley was an MEP and influential European Commission official. Unsurprisingly, Stanley is a Remainer as is Johnson’s brother Jo.  

The fury reserved for Johnson and his betrayal is of a particularly bitter vintage. Johnson was educated in the European School of Brussels in the leafy and well-heeled suburb of Uccle, where, years later, Nick Clegg lived when he was a MEP.

The contempt stems from his time as the Daily Telegraph’s Brussels correspondent. Fake news is now big news. Many in the self-styled “capital of Europe” believe Boris pioneered it.

Johnson was an imaginative reporter. Many still discuss his exclusive about the planned dynamiting of the European Commission. The Berlaymont headquarters stands untouched to this day.

Rival British hacks would receive regular bollockings from irate editors furious to have been beaten to another Boris scoop. They weren’t interested in whether this meant embroidering the truth. 

Johnson invented a uniquely British genre of journalism – the Brussels-basher. It follows a clear template.

Something everyday and faintly ridiculous, like condoms or bananas, fall victim to meddling Brussels bureaucrats. 

The European Commission eventually set up a “Euromyth”website to explode the pervasive belief that Brussels wanted you to eat straight bananas.  Unsurprisingly, it made no difference. Commission staff now insist on being called "European civil servants" rather than bureaucrats.

Commission President Jean-Claude Juncker was so worried about negative headlines that he stalled energy efficiency legislation until after the referendum.

When he shelved sensible laws to restrict excessive energy consumption on toasters and hairdryers, he was rewarded with a Hero of the Week award by the German tabloid Bild, which had developed a taste for Boris-style hackery.  

Many in Brussels draw a direct line from Johnson’s stories to the growing Eurosceptism in the Conservatives, and from that to Ukip, and ultimately Brexit.

To make matters worse, Johnson was the star of the Brexit campaign. His performance confirmed the view of him as an opportunistic charlatan.

The infamous £350m a week bus caused outrage in Brussels, but not as much as what Boris did next.

He compared the EU to Adolf Hitler. Boris knows better than most how offensive that is to the many European politicians who believe that the EU has solidified peace on the continent. 

European Council President Donald Tusk was furious. “When I hear the EU being compared to the plans and projects of Adolf Hitler I cannot remain silent,” said Tusk, a Pole.

“Boris Johnson crossed the boundaries of a rational discourse, demonstrating political amnesia,” he declared, and added there was “no excuse for this dangerous blackout”. It was the first time a leading EU figure had intervened in the referendum campaign.

After the vote for Brexit and his failed tilt at the premiership, Johnson was appointed foreign secretary, to widespread disbelief.

When the news broke, I received a text message from my Italian editor. It read: “Your country has gone mad.” It was the first of many similar messages from the Brussels press pack. 

“You know he told a lot of lies to the British people and now it is him who has his back against the wall,” France’s foreign minister Jean-Marc Ayrault said. Germany’s foreign minister, Frank-Walter Steinmeier called Johnson “outrageous”.

Could Johnson jeopardise the Brexit negotiations?  He can damage them. In November, he was ridiculed by European ministers after telling Italy at a Brussels meeting that it would have to offer tariff-free trade to sell prosecco to the UK.

European Union chiefs moved earlier this week to quell fears they would punish Britain for Brexit. Prime Minister Theresa May had threatened to lure investment away from the EU by slashing corporation tax rates in her speech last week.

Juncker and Joseph Muscat, the prime minister of Malta, which will chair the first Brexit negotiations, both insisted they was no desire to impose a “punitive deal” on the UK. Donald Tusk compared May’s speech and its “warm words” to Churchill. 

An uneasy peace seemed to have been secured. Enter Boris. 

Asked about comments made by a French aide to President Francois Hollande, he said, "If Monsieur Hollande wants to administer punishment beatings to anybody who chooses to escape, rather in the manner of some World War Two movie, then I don't think that is the way forward.”

The European Parliament will have a vote, and effective veto, on the final Brexit settlement. Its chief negotiator Guy Verhofstadt lashed out at Johnson.

“Yet more abhorrent and deeply unhelpful comments from Boris Johnson which PM May should condemn,” he tweeted.

Downing Street wasn’t listening. A spokeswoman said, “There is not a government policy of not talking about the war.”

And just as quickly as it broke out, the new peace was left looking as shaky as ever. 

 

James Crisp is a Brussels-based journalist who is the news editor of EurActiv.com